Knoxville-Area Opportunity Zone Project Lands Financing

Walker & Dunlop originated the $21 million financing package through HUD, combining a two-year construction loan with a long-term mortgage.
Kodak Crossing rendering. Image courtesy of Walker & Dunlop

VITA Development Group has secured a $21.1 million loan from Walker & Dunlop for the construction of Kodak Crossing, a 192-unit workforce housing community in eastern Tennessee. The mortgage, provided through HUD’s 221(d)(4) new construction program, includes a two-year development period followed by a permanent, fully amortizing term of 40 years at a fixed interest rate.

Situated at 168 Bass Pro Drive in the town of Kodak, the development site is located in one of the state’s 176 Qualified Opportunity Zones created by the 2017 Tax Cuts and Jobs Act. While the anticipated flurry of investment activity in these zones did not begin immediately—in part due to confusion over regulations and limits on activity—the IRS offered further clarification and guidance in April.

The 12.7-acre project site is situated across the street from a Bass Pro Shop, alongside Interstate 40 and some 20 miles east of downtown Knoxville. Plans for the pet-friendly community call for one-, two- and three-bedroom units.